Royal Gold (RGLD) Issues Stream Segment Sales Update for Q2
Royal Gold, Inc. RGLD issued a stream sales update for second-quarter 2023. In the quarter, RGLD Gold AG — the fully-owned subsidiary of Royal Gold — sold 53,700 gold equivalent ounces (GEOs), comprising 40,500 gold ounces, 800,900 silver ounces and 800 tons of copper related to its streaming agreements.
The average realized price of gold was $1,983 per ounce in the second quarter compared with $1,869 per ounce in first-quarter 2023. The average realized price of silver stood at $24.01 per ounce, up from the first quarter’s $22.66. Average realized copper prices were $8,720 per ton, down 1.5% sequentially. The company ended the quarter with 17,100 ounces of gold, 331,300 ounces of silver and 400 tons of copper in inventory.
In the three months ended Jun 30, 2023, the cost of sales was $436 per GEO compared with the prior quarter’s $411 per GEO.
In the first quarter of 2023, Royal Gold reported adjusted earnings per share (EPS) of 96 cents, beating the Zacks Consensus Estimate of 94 cents. The bottom line, however, declined 3% year over year.
The company generated revenues of $170 million, reflecting year-over-year growth of 4.9%. The upbeat performance can be attributed to higher gold and copper sales at Mount Milligan, a rise in silver sales at Khoemacau, increased gold production at Cortez and contribution from the newly-acquired royalties.
However, these factors were partly offset by a decline in gold sales at Andacollo, and lower gold and silver production at Peñasquito.
Price Performance
Royal Gold’s shares have gained 9.8% in the past year compared with the industry’s growth of 16.4%.
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Zacks Rank & Stocks to Consider
Royal Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Orla Mining Ltd. ORLA and Osisko Gold Royalties Ltd OR. CRS and ORLA flaunt a Zacks Rank #1 (Strong Buy) at present, and OR has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 30.9%. The Zacks Consensus Estimate for CRS’s fiscal 2023 earnings is pegged at $1.04 per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares gained 111.9% in the last year.
Orla Mining has an average trailing four-quarter earnings surprise of 85.4%. The Zacks Consensus Estimate for ORLA’s 2023 earnings is pegged at 15 cents per share. The consensus estimate for 2023 earnings has moved 87.5% north over the past 60 days. ORLA’s shares gained 48% in the last year.
The Zacks Consensus Estimate for Osisko Gold Royalties’ fiscal 2023 earnings per share is pegged at 47 cents. Earnings estimates have moved 6.8% north in the past 60 days. OR’s shares have gained 50.9% in the past year.
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